Cantabil Retail India announces an aggressive store expansion plan while revealing profit margin pressures in its latest earnings, aiming for a significant revenue boost in FY27 amidst steady online sales growth and strategic localisation.
Cantabil Retail India used its latest earnings call to underline an ambitious expansion plan even as its first-quarter numbers showed pressure on profitability. The company told investors on its Q1 FY27 conference call that it had widened its retail footprint and remained focused on growth, while external reporting on the quarter pointed to a softer financial performance compared with the previous quarter. LiveMint said operating profit fell to ₹27.26 crore, profit after tax dropped to ₹14.67 crore and total income came in at ₹158.68 crore, with an operating margin of 17.18%.
According to Arthneeti, Cantabil is aiming to add 90 to 100 stores a year and increase retail space by 15% to 20% annually, with a minimum target of 15%. The company is also targeting revenue of INR 1,000 crores in FY27, up from INR 852.6 crores in FY26, while same-store sales growth is expected to hold in the 5% to 6% range and could reach 7% to 8% in a stronger case. The analysis also said online sales are rising steadily and footwear could grow from 2% to 4% of total sales by FY27.
The company’s longer-term operating model remains centred on keeping more production close to home. Arthneeti said Cantabil expects about 60% of output to remain in-house or with job workers, with capacity additions concentrated in higher-margin suit plants. That mix is intended to help preserve gross margins of about 60% despite inflationary pressure.
Cantabil also appears to be coming off a year of broad-based growth. AlphaStreet and MarketScreener reported that in Q1 FY26 the company delivered same-store sales growth of 11.3%, revenue growth of 24% and profit after tax growth of 29%, a performance it linked to brand strength and customer loyalty. EarningsCalls.dev said that by the end of FY26 the company had 652 stores across India and about 9.5 lakh square feet of retail area, suggesting a scale-up that gives context to its current push for more outlets and stronger revenue.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
